Farmer representatives have expressed concern over a planned butter deal by Tirlán in the US.

The Irish Farmers' Association (IFA) is seeking an "urgent meeting" with Tirlán management to discuss the co-op's US butter deal.

Agriland understands that Kilkenny based dairy co-op Tirlán has agreed to supply grass-fed butter to US retailer, Costco.

It is believed that the agreement will see Tirlán supply butter for Costco's private label brand, Kirkland.

Tirlán

The IFA National Council was briefed yesterday (Tuesday, July 28) in relation to Tirlán's plans to supply grass-fed butter to the US retail brand.

IFA president Francie Gorman said there was "huge concern" expressed about the implications of this move for the Kerrygold brand and Ornua.

Kerrygold, which is owned by Ornua, is the second most popular branded butter in the US.

"We understand that it is already having significant consequences for the Kerrygold brand in the US.

IFA’s nominee to the Ornua board, Martin McElearney, wrote to the Ornua chair, Kevin Toland, on Monday advising him that he intended to brief the IFA Dairy Committee and National Council on developments in the US butter market.

“I fully understand my fiduciary duties to Ornua, but I believe that farmers needed to be made aware of what is going on.

"Ultimately, Ornua is owned by co-ops who are owned by farmers and it is farmers that will pay for any undermining of our product in the US market," he said.